Gold Gains as Markets Worry About US-China Tensions Rising

Gold prices are climbing higher as US President Donald Trump threatens to impose more tariffs against China over the coronavirus pandemic

Gold Gains as Markets Worry About US-China Tensions Rising

At the start of a brand new trading week, gold prices are climbing higher as US President Donald Trump threatens to impose more tariffs against China over the coronavirus pandemic, which Trump alleges originated from a lab in China. At the time of writing, GOLD is trading at a little above $1,699.

Fresh trade tensions are back to haunt global markets, souring the mood and raising the safe haven appeal of gold all over again after Trump and other government officials reiterated their allegations that China failed to alert other countries about the pandemic in time and was responsible for the rampant spread of the virus worldwide. Trump stated last week that he is exploring ways to retaliate against China for spreading the virus globally and hiking tariffs was one option under consideration.

Gold has also turned bullish after Fed officials highlighted long-term risks to economic recovery if the US is not careful about resuming economic activity in the aftermath of the pandemic. Despite rolling out several stimulus measures, the US central bank has hinted that it could unveil more efforts to support economic recovery in the US, a sign that once again serves to boost the safe haven appeal of gold.

Gold has also gained on the back of disappointing economic data releases from Japan in the Asian session, with Tokyo’s consumer prices experiencing the first decline in three years during April. Meanwhile, the Japanese manufacturing sector continues in contraction on account of the coronavirus pandemic.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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